Federal Trade Commission on 22nd August announced that the promoters of recruitment-based cryptocurrency schemes have been banned from participating in any multi-level marketing program. FTC claimed these schemes to be deceitful for investors. Last year FTC froze assets of two such companies that mislead investors through false promotion.
FTC obtained an order from a federal court to halt activities of Bitcoin Funding Team and My7Network. These two companies were indulged in multi-marketing schemes. FTC froze assets of Thomas Dluca, Eric Pinkston, Louis Gatto, and Scott Chandler who were behind these deceptive marketing practices. As part of the settlement Dluca, Chandler and Pinkston have agreed to pay a total sum of $940,000.
FTC claimed that Bitcoin Funding Team and My7Network were involved in a pyramid scheme where they lured new investors through false promises. Both the companies assured investors of a fixed return on investments but failed to do so. The companies promoted these schemes through various social media platforms and claimed to turn a $100 investment in $80,000 monthly income. Investors who put their funds in the program failed to recover even their initial investments.